Due to the extraordinary situation Norwegian mortgage customers now face, Sbanken has today decided to cut interest rates on all floating rate mortgages by 0.5 percentage points.

- This is not the time for strategic play and tactics, but the time for us to stand together in a crisis. Today’s rate cut is significant and will immediately come to the benefit of our customers, which is in line with signals given from both policy makers and our customers, says Øyvind Thomassen, CEO of Sbanken, and adds:

- The key policy rate in Norway is at an all-time low, but there is significant turmoil and uncertainty in the financial markets. One result is that Sbanken’s cost to finance mortgages has not fallen to the same degree as the key policy rate. However, our customers are the ones mostly affected by this situation. This is why today’s mortgage rate cut comes with immediate effect, and we implement necessary changes to our operations in order to help our customers when they need it the most.

2500 applications for instalment-free period

Today’s interest rate cut of 0.5 percentage points benefits mortgage customers with floating interest rates across all types of mortgage rates and customers will receive price change notices this week. Sbanken’s new best indicative mortgage rate will now be at 1.98 per cent.

- During the Financial crisis of 2008, the banks were the problem. This time, the banks are a tool. Over time, Sbanken has had the lowest rates on mortgages in the Norwegian market. We are now lowering our interest rates even further. In addition to this, we have already supported many of our customers in a stressed situation by granting a 3-month instalment-free period. Close to 2500 customers have reached out to us and asked for help, in addition to showing gratitude for our support. Number of applications for instalment-free periods is expected to increase if the current situation continues.

Sbanken’s customers will receive notification regarding the changes in mortgage rates shortly. Interest rate changes on all deposits will apply from 24 May. Updated price list will be made available tomorrow 24 March on Sbanken.no.

The interest rate cut announced on 17 March will be implemented as previously stated. This means that Sbanken's new best indicative mortgage rate at 1.98 per cent will apply for excisting customers from 30 April.